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- Mar 11, 2013
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I have a query regarding obsolete stock write-off and was wondering if anyone can help? I am too hot on stock double entry and this is the first time I have come across this issue.
I have received a list of inventory items to be written off, normally I would DR P&L waste account and CR COS. However these particular items are not strictly waste items and I have been asked to write them off to the 'stock provision' rather than the waste account. My boss mentioned putting them to the stock obsolescence provision account but I am confused as to how this works as this sits in the P&L and I would be DR stock obsolescence provision and CR COS. My boss mentioned this as a better alternative as she didn’t want such a large w/off to hit the P&L.
Any advice would be much appreciated.
I have no real idea about the purpose of the stock obsolescence provision.
Thanks
I have received a list of inventory items to be written off, normally I would DR P&L waste account and CR COS. However these particular items are not strictly waste items and I have been asked to write them off to the 'stock provision' rather than the waste account. My boss mentioned putting them to the stock obsolescence provision account but I am confused as to how this works as this sits in the P&L and I would be DR stock obsolescence provision and CR COS. My boss mentioned this as a better alternative as she didn’t want such a large w/off to hit the P&L.
Any advice would be much appreciated.
I have no real idea about the purpose of the stock obsolescence provision.
Thanks